Among small business owners, there is one distinctive large category that needs specialized guidance and assistance. This group is commonly referred to as independent contractors or subcontractors and include anesthesiologists, cable TV line installers, construction workers, court reporters, delivery route workers, drywall finishers, electricians, exterminators, hair dressers, home health care providers, house painters, insurance agents, lawn care workers, marketing representatives, medical transcriptionists, nail technicians, outside sales persons, plumbers, real estate agents, stenographers, telemarketers, truck drivers, window washers, and numerous others.
Many subcontractors do not possess the training or discipline to budget their income or allocate funds for taxes. The subcontractors' intention to pay the taxes in a timely manner fail when the funds are not available. The taxes are left unpaid because unexpected expenditures arise.
Also, many subcontractors do not actively decide to start a business but rather do so while job searching and performing smaller tasks. Many do not realize they are self-employed and responsible for both halves of their social security taxes, and therefore, how large their tax liability is until it is too late. Several of these jobs do not require special skills or education, so there aren't any training programs in our education system that would include explaining the tax ramifications to potential subcontractors.
Hence, the need for the system of the present invention has evolved. These subcontractors need help to allocate their taxes as they earn their income, and they must be taught the ramifications of the tax laws which affect them, what deductions are allowable, and how to keep appropriate records.